GSK plans to sell Rs 28,000 Cr stake in Hindustan Unilever
GSK plans to sell Rs 28,000 Cr stake in Hindustan Unilever – After completion of the merger between GlaxoSmithKline Consumer Healthcare and Hindustan Unilever Ltd (HUL).
GlaxoSmithKline (GSK) plc, which owns a 5.7 percent stake in Hindustan Unilever Ltd (HUL), is getting to sell its shareholding through a series of block trades, consistent with Bloomberg News.
British drugmaker GlaxoSmithKline plc is reportedly getting to sell it’s $3.7 billion (Rs 28,000 crore) stake within the Indian FMCG major. If the deal is executed successfully, this might be the most important block trade in India.
On April 1, 2020, HUL completed the merger of GlaxoSmithKline Consumer Healthcare (GSK CH) India, the health foods portfolio of GSK, with itself after receiving all the required regulatory approvals. The merger of GSK CH India with HUL was done on the idea of an exchange ratio of 4.39 HUL shares for every GSK CH India share, implying a complete equity value of Rs 31,700 crore for 100 percent of GSK CH India.
Post the merger, GSK plc became the second-largest shareholder within the merged entity with a 5.7 percent stake while Anglo-Dutch Unilever’s stake in HUL declined to 61.9 percent from 67.2 percent earlier.
HUL has proposed to accumulate the favored health drink brand Horlicks from GSK for a consideration of EUR 375.6 million (Rs 3,045 crore), exercising the choice available within the original agreement between its parent firm Unilever and GSK plc. With this, popular milk supplement brands Horlicks, Boost, and Maltova will come under HUL, the maker of Dove, Pears, and Lipton brands. This deal will allow HUL to utilize cash on its record and make value creation for all stakeholders.
In December 2018, FMCG giant Unilever had announced the acquisition of food portfolio from GSK CH India, including popular brands Horlicks and Boost, for $3.8 billion, to spice up its food and refreshment business in India.
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